Although tight conditions are likely on the electric grid during the early summer months, the outlook improves by late summer, when more than 2,100 megawatts (MW) from four new natural gas-fired generation resources are slated to begin commercial operations.

“While we anticipate sufficient generation for summer, conditions may become tight — potentially requiring conservation measures to protect the grid — if we see extremely high demand during the early summer, before these new units begin operating,” said Warren Lasher, ERCOT director of System Planning.

The new combined-cycle gas-fired power plants¾Ferguson, Panda Sherman, Panda Temple I and Deer Park Energy Center¾are scheduled to begin operating by Aug. 1, with one unit scheduled to bring new capacity on-line in early July.

Peak demand for this summer is expected to exceed 68,000 megawatts (MW). One MW is enough electricity to power about 200 homes when demand is highest. ERCOT’s all-time record peak of 68,305 MW occurred on Aug. 3, 2011, during the hottest summer on record.

We believe that by working with an unbiased energy consultant, companies can better navigate though volatile markets, price swings, and overall uncertainty.

We recognize several trends in the energy industry. Deregulation in both electricity and gas markets continues to spread state by state as consumers and governments recognize the benefits of competive energy markets. We believe that this will continue as regulators are able to tailor market designs to best meet the needs and requirements of its participants. Additionally, the shift towards renewable energy projects continues to be bolstered by private investments, mostly in states with relaxed electricity structures. This indirectly benefits our industry by shifting the reliability of energy supply to domestic resources. Finally, the higher cost of energy over the past couple decades has required new ideas to be formulated in order to help contain prices.